GS Group eyes 36 tln won in sales this year

By Nam Kwang-sik
SEOUL, Jan. 14 (Yonhap) -- South Korean energy and retail conglomerate GS Group
said Wednesday it is targeting sales of 36 trillion won (US$26.6 billion) this
year, down 26 percent from a year earlier, due to a deepening global economic
crisis.

The nation's sixth-largest business conglomerate will invest a total of 2.3
trillion won, 10 percent more than the previous year, in the energy, retail and
construction sectors to combat the economic downturn, it said in a regulatory
filing with the Korea Exchange.
In the energy sector, GS Caltex Corp., the flagship affiliate of the group, will
spend 1.7 trillion won to complete its third heavy-oil upgrading unit and expand
its presence in oil exploration and fuel cells.
GS Caltex has been working on a 3-trillion-won third heavy oil upgrading unit,
which converts heavy oil into profitable transportation fuels, since June of last
year.
South Korea's second-largest refiner also plans to increase the number of its gas
stations in China this year. It has been running a total of five gas pumps in
Shandong Province since 2007.
Unlisted GS Caltex is a 50-50 joint venture between GS Holdings Corp. of South
Korea and Chevron Corp., the second-biggest U.S. oil company.
Meanwhile, the group will invest 400 billion won into the retail sector and 200
billion won into the construction sector to expand overseas business projects
this year, it added.
GS Engineering & Construction Co., the group's construction unit, posted about 5
trillion won in overseas orders last year. The global economic downturn is
expected impact those sales slightly this year, the group said.
ksnam@yna.co.kr
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